Application of Fractional Model and Two Part Model to Evaluation on Mortgage Risk of Default Behaviour
This paper has debated between fractional and two part models in the context of default behaviour, applications where a large proportion of zero observations are typically found. The predictive capacity in this paper is to provider the direction of consideration and very good fit result to the behaviour of default for bank. From the perspective of practitioners, it could point of view the characteristics of borrowers of each variable would seem to be choosing in this paper. This paper also provides the simply looking at the extent to which policy decision of bank conclusions would differ depending upon the characteristics of customers’ behaviour consideration.
Y. Cheng et al., "Application of Fractional Model and Two Part Model to Evaluation on Mortgage Risk of Default Behaviour", Advanced Materials Research, Vol. 214, pp. 503-507, 2011